Jacob Deutsch owned commercial property. He orally agreed to rent it for six years to Budget Rent-A-Car. Budget took possession, began paying monthly rent, and over a period of several months expended about $6,000 in upgrading the property. Deutsch was aware of the repairs. After a year, Deutsch attempted to evict Budget. Budget claimed it had a six-year oral lease, but Deutsch claimed that such a lease was worthless. Please rule. Is it ethical for Deutsch to use the statute of frauds in attempting to defeat the lease? Assume that, as landlord, you had orally agreed to rent premises to a tenant, but then for business reasons preferred not to carry out the deal. Would you evict a tenant if you thought the statute of frauds would enable you to do so? How should you analyze the problem? What values are most important to you?
> CeCe Hylton and Edward Meztista, partners in a small advertising firm, agreed to terminate the business and split assets evenly. Meztista gave Hylton a two-page document showing assets, liabilities, and a bottom line of $35,235.67, with one half due to e
> In Japan, automobile GPS systems come equipped with an option for converting them into televisions so that drivers can watch their favorite shows, yes, while driving. “We can’t help but respond to our customers’ needs,” says a company spokesperson. Alth
> Leslie Bergh and his two brothers, Milton and Raymond, formed a partnership to help build a fancy saloon and dance hall in Evanston, Wyoming. Later, Leslie met with his friend and drinking buddy, John Mills, and tricked Mills into investing in the saloon
> The day after Thanksgiving, known as Black Friday, is the biggest shopping day of the year. One major retailer advertised a “Black Friday only” laptop for $150. On Thanksgiving night, hundreds of people waited for the store to open to take advantage of t
> Case law tells us that a course syllabus is not a binding contract—but how about your school’s honor code? Under what conditions could an honor code be a contract?
> Each time employees at BizCorp enter their work computers, the following alert appears: “You are attempting to access the BizCorp network. By logging in, you agree to BizCorp’s Computer Usage Policy and certify that your use of this computer is strictly
> Mickle pleaded guilty to rape. The judge sentenced him to prison for five years and also ordered that he undergo a vasectomy. Was this cruel and unusual punishment?
> Consolidated Edison Co. of New York (Con Ed) sought bids from General Electric Co. (GE) and others to supply it with two huge transformers. Con Ed required that the bids be held open for 90 days. GE submitted a written bid and included a clause holding
> The Tufte family leased a 260-acre farm from the Travelers Insurance Co. Toward the end of the lease, Travelers mailed the Tuftes an option to renew the lease. The option arrived at the Tuftes’ house on March 30, and gave them until April 14 to accept.
> James, the owner of an auto parts store, told his employee, Rickey, to clean and paint some tires in the basement. Highly flammable gasoline fumes accumulated in the poorly ventilated space. James threw a firecracker into the basement, as a joke, intendi
> The town of Sanford, Maine, decided to auction off a lot it owned. The town advertised that it would accept bids through the mail, up to a specified date. Arthur and Arline Chevalier mailed in a bid that turned out to be the highest. When the town ref
> After the 9/11 terrorist attacks, the U.S. government imprisoned suspected terrorists in Guantanamo Bay, Cuba. Officials argued that these detainees did not enjoy constitutional rights because they were not on U.S. soil, even though they were held by Am
> When a Tom Cat Bakery delivery van struck Elizabeth Nadel, she suffered significant injuries, Nadel filed suit. Before the trial, Tom Cat’s attorney offered a $100,000 settlement, which Nadel refused. While the jury was deliberating, the bakery’s lawyer
> Niels owned three adjoining parcels of land in Arizona. Hannah wanted to buy one. Over dinner, the two sketched and signed this agreement: “Binding Contract: Niels agrees to sell one of his three Arizona lots to Hannah. Within 14 days, the parties will m
> Pacific Express began operating as an airline in 1982. It had routes connecting western cities with Los Angeles and San Francisco and by the summer of 1983 was beginning to show a profit. In 1983, United Airlines tried to enter into a cooperative arrange
> Central Maine Power Co. made a promotional offer in which it promised to pay a substantial sum to any homeowner or builder who constructed new housing heated with electricity. Motel Services, Inc., which was building a small housing project for the city
> Each year, the sale of Girl Scout cookies is the major fund-raiser for local troops. But because the organization was criticized for promoting such unhealthy food, it introduced a new cookie, Mango Cremes with Nutrifusion. It promotes this cookie as a
> Ryder leased a truck to Florida Food Service; Powers, an employee, drove it to make deliveries. He noticed that the door strap used to close the rear door was frayed, and he asked Ryder to fix it. Ryder failed to do so in spite of numerous requests. The
> Pennsylvania contracted with Envirotest Systems, Inc., an Arizona company, to build 86 automobile emissions inspection stations in 25 counties and operate them for seven years. This contract is worth hundreds of millions of dollars to Envirotest. But Pen
> Gail Norton began dating Russell Hoyt under the mistaken impression that he was single. She later learned that he was married, but he repeatedly assured her he was getting a divorce. Six years later, Hoyt convinced Norton to quit her job so that they cou
> John Stevens owned a dilapidated apartment that he rented to James and Cora Chesney for a low rent. The Chesneys began to remodel and rehabilitate the unit. Over a four-year period, they installed two new bathrooms, carpeted the floors, installed new sep
> You want to lease your automobile to a friend for the summer but do not want to pay a lawyer to draw up the lease. Joanna, a neighbor, is in law school. She is not licensed to practice law. She offers to draft a lease for you for $100, and you unwisely a
> In 1966, Arketex Ceramic Corp. sold land in rural Indiana to Malcolm Aukerman. The deed described the southern boundary as the section line between sections 11 and 14 of the land. Further south than this section line stood a dilapidated fence running eas
> Interactive Data Corp. hired Daniel Foley as an assistant product manager at a starting salary of $18,500. Over the next six years Interactive steadily promoted Foley until he became Los Angeles branch manager at a salary of $56,116. Interactive’s office
> Marina Stengart used her company laptop to communicate with her lawyer via her personal, password-protected, web-based e-mail account. The company’s policy stated: ‘E-mail and voice mail messages, internet use and communication and computer files are con
> Matt Drudge published a report on his website (http://www.drudgereport.com) that White House aide Sidney Blumenthal “has a spousal abuse past that has been effectively covered up…. There are court records of Blumenthal’s violence against his wife.” The D
> Tata Consultancy of Bombay, India, is an international computer consulting firm. It spends considerable time and effort recruiting the best personnel from India’s leading technical schools. Tata employees sign an initial three-year employment commitment,
> Lydia D’Ettore received a degree in computer programming at the DeVry Institute of Technology, with a grade-point average of 2.51. To finance her education, she borrowed $20,516.52 from a federal student loan program. After graduation, she could not find
> At approximately 7:50 pm bells at the train station rang and red lights flashed, signaling an express train’s approach. David Harris walked onto the tracks, ignoring a yellow line painted on the platform instructing people to stand back. Two men shouted
> Asher and Stephen formed a corporation named “Ampersand” to produce plays. Both men were employed by the corporation. Stephen decided to write Philly’s Beat, focusing on the history of rock and roll in Philadelphia. As the play went into production, howe
> Wallace, Inc. adopted a poison pill. Five years later, Moore Corp. offered to buy all Wallace’s stock for $56 a share, which was 27 percent over the existing market price. However, the offer was contingent upon the Wallace board eliminating the poison pi
> Both Viacom and Paramount owned a diverse group of entertainment businesses. QVC was a televised shopping channel. The Paramount board of directors accepted a merger offer from Viacom at a price of $69 per share. QVC and Viacom then entered a bidding war
> Congressional Airlines was highly profitable operating flights between Washington, D.C., and New York City. The directors approved a plan to offer flights from Washington to Boston. This decision turned out to be a major mistake, and the airline ultimate
> Ulrick and Birger started an air taxi service in Berlin, Germany, under the name Berlinair, Inc. Birger was approached by a group of travel agents who were interested in hiring an air charter business to take German tourists on vacation. Birger formed Ai
> Accountants do not have a fiduciary duty to their clients when performing accounting services. Why not?
> Krug International, an Ohio corporation, had a contract with Iraqi Airways to build aeromedical equipment for training pilots. Krug then contracted for Power Engineering, an Iowa corporation, to build the specialized gearbox to be used in the training eq
> Evans built a house for Sandra Dyer, but the house had some problems. The garage ceiling was too low. Load-bearing beams in the “great room” cracked and appeared to be steadily weakening. The patio did not drain properly. Pipes froze. Evans wanted the mo
> Jacobs Builders entered into a contract with Kent to build him a home. The agreement stated that Jacobs would use only certain brand-name materials. Upon completion of the home, Kent discovered that Jacobs had installed high-quality, but not brand-name,
> Westinghouse sold uranium in long-term contracts at fixed prices, betting that market prices would be stable or fall (as they had been). But this was a bad bet: Uranium prices skyrocketed as a result of a cartel. Faced with large losses if it had to fulf
> Located in Bath, Maine, Bath Iron Works builds high-tech warships for the Navy. Winning Navy contracts is crucial to the company’s success—it means jobs for the community and profits for the shareholders. Navy officials held a meeting at Bath’s offices
> Hiring relatives of foreign officials for no-show jobs is a violation of the FCPA. But what about hiring children of government officials into real jobs? Is that also a violation? The U.S. government is investigating JPMorgan Chase & Co.’s practice of hi
> Mary Price went for a consultation about a surgical procedure to remove abdominal fat. When Robert Britton met with her, he wore a nametag that identified him as a doctor, and was addressed as “doctor” by the nurse. Britton then examined Price, touching
> Stephen Muka owned U.S. Robotics. He hired his brother Chris to work in the company. His letter promised Chris $1 million worth of Robotics stock at the end of one year, “provided you work reasonably hard & smart at things in the next year.” (We should a
> Commercial Union Insurance Co. (CU) insured Redux, Ltd. The contract made CU liable for fire damage, but stated that the insurer would not pay for harm caused by criminal acts of any Redux employees. Fire destroyed Redux’s property. CU claimed that the “
> Ken Ward was an Illinois farmer who worked land owned by his father-in-law, Frank Ruda. To finance his operation, he frequently borrowed money from Watseka First National Bank, paying back the loans with farming profits. But Ward fell deeper and deeper i
> Kuhn Farm Machinery, a European company, signed an agreement with Scottsdale Plaza Resort, of Arizona, to use the resort for its North American dealers’ convention during March 1991. Kuhn agreed to rent 190 guest rooms and spend several thousand dollars
> Loehmann’s clothing stores, a nationwide chain with headquarters in New York, was the anchor tenant in the Lincoln View Plaza Shopping Center in Phoenix, Arizona, with a 20-year lease from the landlord, Foundation Development, beginning in 1978. Loehmann
> A disc jockey named Z-Trip made a remix of a Beastie Boys song with the hip-hop group’s permission. Monster Energy (ME), an energy drink company, wanted to use the remix as part of a video promotion. Monster Energy sent an email asking Z-Trip to approve
> Mast Industries and Bazak International were two textile firms. Mast orally offered to sell certain textiles to Bazak for $103,000. Mast promised to send documents confirming the agreement, but never did. Finally, Bazak sent a memorandum to Mast confirmi
> Burglar Bob breaks into Vince Victim’s house. Bob steals a flat screen TV and laptop and does a significant amount of damage to the property before he leaves. Fortunately, Vince has a state of the art security system. It captures excellent images of B
> The federal Defense of Marriage Act (DOMA) defined marriage as a union between a man and a woman. As a result, same-sex couples were not eligible for the federal marriage benefits given to heterosexual couples. Edith Windsor and Thea Spyer had been tog
> Carter was an employee of the Sheriff’s office in Hampton, Virginia. When his boss, Sheriff Roberts, was up for reelection against Adams, Carter “liked” the Adams campaign’s Facebook page. Upon winning reelection, Sheriff Roberts fired Carter, who then
> Suppose two people are living together: the suspect and a tenant. If the tenant consents to a police search of the premises, then the police are not required to first obtain a warrant. What if the suspect and the tenant disagree, with the tenant granting
> David Lucas paid $975,000 for two residential lots on the Isle of Palms near Charleston, South Carolina. He intended to build houses on them. Two years later the South Carolina legislature passed a statute that prohibited building seaward of a certain l
> In the landmark 1965 case of Griswold v. Connecticut, the Supreme Court examined a Connecticut statute that made it a crime for any person to use contraception. The majority declared the law an unconstitutional violation of the right of privacy. Justic
> In 1996, California legalized the medical use of marijuana, even though it was still illegal under federal law. Californians Angel Raich and Diane Monson used homegrown medical marijuana. When federal agents destroyed their plants, Monson and Raich sue
> The Senate recently released a report on wrongdoing at JPMorgan Chase & Co. It found that bank executives lied to investors and the public. Also, traders, with the knowledge of top management, changed risk limits to facilitate more trading and then vio
> I oversee the internal audit function at my company. Although we always use a Big Four accounting firm, we have no loyalty to any one particular firm. We hold periodic bid competitions to get the lowest price we can. At the moment, we are using Firm A
> Twin Creeks Entertainment signed a deal with U.S. JVC Corp. in which JVC would buy 60,000 feature film videocassettes from Twin Creeks over a three-year period. JVC intended to distribute the cassettes nationwide. Relying on its deal with JVC, Twin Cre
> A century and a half ago an English judge stated: “All painters do not paint portraits like Sir Joshua Reynolds, nor landscapes like Claude Lorraine, nor do all writers write dramas like Shakespeare or fiction like Dickens. Rare genius and extraordinar
> Nationwide Discount Furniture hired Rampart Security to install an alarm in its warehouse. A fire would set off an alarm in Rampart’s office, and the security company was then supposed to notify Nationwide immediately. A fire did break out, but Rampart
> Intercontinental Metals Corp. (IMC) contracted with the accounting firm of Cherry, Bekaert & Holland to perform an audit. Cherry issued its opinion about IMC, giving all copies of its report directly to the company. IMC later permitted Dun & Bradstreet
> Judith and John Brooks hired Wayne Hayes to build a house. The contract required Hayes to “provide all necessary labor and materials and perform all work of every nature whatsoever to be done in the erection of the residence.” Hayes hired subcontractor
> David Ricupero suspected his wife Polly of having an affair, so he taped her phone conversations and, based on what he heard, sued for divorce. David’s lawyer, William Wuliger, had the recorded conversations transcribed for use at trial. The parties set
> Darin bought his fiancée Sarah a 3-carat diamond ring for $43,121 from Mandarin Gems. Later, Mandarin supplied Erstad with a written appraisal valuing the engagement ring at $45,500. Years later, the couple divorced and Sarah kept the ring. When she ha
> Police arrested Hank on a warrant issued in a neighboring county. When they searched him, the police found drugs and a gun. Only later did the police discover that when they had used the warrant, it was not valid because it had been recalled months earli
> Woodson Walker and Associates leased computer equipment from Park Ryan Leasing. The lease said nothing about assignment. Park Ryan then assigned the lease to TCB as security for a loan. Park Ryan defaulted on its loan, and Walker failed to make several
> Richard Griffin and three other men owned a grain company called Bearhouse, Inc., which needed to borrow money. First National Bank was willing to loan $490,000, but insisted that the four men sign personal guaranties on the loan, committing themselves t
> Lonnie Hippen moved to Long Island, Kansas, to work in an insurance company owned by Griffiths. After he moved there, Griffiths offered to sell Hippen a house he owned, and Hippen agreed in writing to buy it. He did buy the house and moved in, but two ye
> After filing for bankruptcy, Yvonne Brown sought permission of the court to reaffirm a $6,000 debt to her credit union. The debt was unsecured and she was under no obligation to pay it. The credit union had published the following notice in its newslette
> When Deana Byers married Steven Byers, she was pregnant with another man’s child. Shortly after the marriage Deana gave birth. The marriage lasted only two months, and the couple separated. In divorce proceedings, Deana sought child support. She claimed
> Because of his success in a big case, a lawyer named Melbourne promised his assistant, Barbara . a large bonus. After the case settled, Melbourne met with Barbara to discuss when and how much he would pay her. In the conversation that she secretly record
> Landlord owned a clothing store and agreed in writing to lease the store’s basement to another retailer. The written lease, which both parties signed, (1) described the premises exactly, (2) identified the parties, and (3) stated the monthly rent clearly
> When Steven Simkin and Laura Blank divorced in 2006, they agreed to split their $13.5 million fortune evenly. Two years later, it became evident that Simkin had a problem: his half was invested in Bernard Madoff’s giant Ponzi scheme and he lost million
> Paula was alone, pregnant, and confused. She needed help and support, which she found at Methodist Mission Home of Texas. In the days following her child’s birth, representatives of Methodist Mission forcefully told her that she had no moral or legal r
> Ball-Mart, a baseball card store, had a 1968 Nolan Ryan rookie card in almost perfect condition for sale. Any baseball collector would have known that the card was worth at least $1,000; the published monthly price guide listed its market value at $1,200
> A group of medical schools conducted a study on very premature babies—those born between 24 and 27 weeks of gestation (instead of the normal 40 weeks). These children face a high risk of blindness and death. The goal of the study was to determine which
> Suzy Tomlinson, 74, met a tragic end – she drowned, fully-clothed, in her bathtub after a night out partying with 36 year old J.B. Carlson. He had taken her home at 1 a.m. and was the last person to see her alive. The two were not only party buddies, Suz
> If your grandparents were to die leaving a large estate and all of their children were also dead, would you prefer a per stirpes or per capita distribution?
> Linda and Eddie had two children before they were divorced. Under the terms of their divorce, Eddie became the owner of their house. When he died suddenly, their children inherited the property. Linda moved into the house with the children and began payi
> When William Cook died, his will left all of his property to his brother Eugene. There were two other pieces of paper in the safe with the will. One said that that his stamp collection should go to his housekeeper, Bertha. This document was signed by two
> When Gregg died, his will left his money equally to his two children, Max and Alison, whom he explicitly named. Max had died a few years earlier, leaving behind a widow and four children. Who will get Gregg’s money?
> Clyde received a letter from his automobile insurance company notifying him that it would not renew his policy that was set to expire on February 28. Clyde did not obtain another policy, and, in a burst of astonishing bad luck, on March 1, at 2:30 a.m.,
> Shawn was caught stealing letters from mailboxes. After pleading guilty, he was sentenced to two months’ in prison and three years’ supervised release. One of the supervised release conditions required him to stand outside a post office for eight hours w
> Dannie Harvey sued her employer, O. R. Whitaker, for sexual harassment, discrimination, and defamation. Whitaker counter-claimed for libel and slander, requesting $1 million in punitive damages. Both Whitaker and Harvey were insured by Allstate, under id
> Dan checks into a nice beachfront hotel. He does not want to expose his $10,000 Patek Philipe wristwatch to saltwater, and so he leaves it in the dresser in the room. When he returns from the beach, the watch is gone. He is shocked to learn that the h
> Ronald Armstead worked for First American Bank as a courier. His duties included making deliveries between the bank’s branches in Washington, DC Armstead parked the bank’s station wagon near the entrance of one branch in violation of a sign saying: “No P
> During her second year at the Juilliard School of Music in New York City, Ann Rylands had a chance to borrow for one month a rare Guadagnini violin, made in 1768. She returned the violin to the owner in Philadelphia, but telephoned her father to ask if h
> Eileen Murphy often cared for her elderly neighbor, Thomas Kenney. He paid her $25 per day for her help and once gave her a bank certificate of deposit worth $25,000. She spent the money. Murphy alleged that shortly before his death, Kenney gave her a
> Marjan International Corp. sells handmade oriental rugs. V. K. Putman, Inc., is a Montana trucking company. Marjan delivered valuable rugs to Putman for shipment from New York City to Tacoma, Washington. Unfortunately, there were several delays in transi
> During the Great Depression of the 1930s, the federal government’s Works Progress Administration hired artists to create public works of art. The goal was to provide employment and beautify the nation. The artist James Daugherty painted six murals on the
> In 1944, W. E. Collins conveyed land to the Church of God of Prophecy. The deed said: “This deed is made with the full understanding that should the property fail to be used for the Church of God, it is to be null and void and property to revert to W. E.
> Lisa Preece rented an apartment from Turman Realty, paying a $300 security deposit. Georgia law states: “Any landlord who fails to return any part of a security deposit which is required to be returned to a tenant pursuant to this article shall be liable
> Kenmart Realty sued to evict Mr. and Ms. Alghalabio for nonpayment of rent and sought the unpaid monies, totaling several thousand dollars. In defense, the Alghalabios claimed that their apartment was infested with rats. They testified that there were nu
> Karin made illegal firearm purchases at a gun show. At her trial, she alleged that she had committed this crime because her boyfriend had threatened to harm her and her two daughters if she did not. Her lawyer asked the judge to instruct the jury that th
> Frank Deluca and his son David owned the Sportsman’s Pub on Fountain Street in Providence, Rhode Island. The Delucas applied to the city for a license to employ topless dancers in the pub. Did the city have the power to deny the Delucas’ request? Argumen
> Nome 2000, a partnership, owned a large tract of wilderness land in Alaska. The Fagerstrom family had used the property for camping and holidays since about 1944. In 1966, Charles and Peggy Fagerstrom marked off an area for a cabin and brought material t
> In New Orleans, Mardi Gras “Indians” are carnival revelers who dress up for Mardi Gras in costumes influenced by Native American ceremonial attire. “Indians” often spend the entire year and thousands of dollars crafting their intricate designs with feath
> Fredrik Colting wrote a book entitled, 60 Years Later: Coming Through the Rye, a riff on J. D. Salinger’s famous Catcher in the Rye. Colting’s book imagined how Salinger’s protagonist, Holden Caulfield would view life as a 76-year old. Alice Randall wro
> While in college, David invented a new and useful machine to make macaroni and cheese (he called it the “Mac ‘n’ Cheeser”). It was like nothing on the market, but David did not apply for a patent. At that time, he offered to sell his invention to several
